Question: Dynamic Research (DR) is a company that produces software designed to enhance company creativity. The current stock price for the company is $9.75 per share.

Dynamic Research (DR) is a company that produces software designed to enhance company creativity. The current stock price for the company is $9.75 per share. The daily changes in stock price over the last 500 trading days have been analyzed, resulting in the following frequency distribution: 

Price Change Frequency -$5.00 1 -$1.00 20 -$0.50 55 95 -$0.38 $0.00


Develop a spreadsheet model to simulate the stock performance over the next 90 trading days. Use Monte Carlo simulation with 100 trials to replicate the spreadsheet and find the distribution of the ending stock price.

Price Change Frequency -$5.00 1 -$1.00 20 -$0.50 55 95 -$0.38 $0.00 $0.38 $0.50 $1.00 $2.00 140 100 73 10 6

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Price change Frequency Probability 500 1 0002 100 20 004 050 55 011 038 95 019 000 140 028 038 100 02 050 73 0146 100 10 002 200 6 0012 500 Lookup Tab... View full answer

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